Discounted Cash Flow (DCF) Analysis Levered
Western Digital Corporation (WDC)
$39.7
-0.40 (-1.00%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 20,647 | 16,569 | 16,736 | 16,922 | 18,793 | 18,484.08 | 18,180.24 | 17,881.40 | 17,587.47 | 17,298.37 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 4,205 | 1,547 | 824 | 1,898 | 1,880 | 2,064.53 | 2,030.60 | 1,997.22 | 1,964.39 | 1,932.10 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -835 | -876 | -647 | -1,146 | -1,107 | -955.99 | -940.28 | -924.82 | -909.62 | -894.66 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 3,370 | 671 | 177 | 752 | 773 | 1,108.54 | 1,090.32 | 1,072.40 | 1,054.77 | 1,037.43 |
Weighted Average Cost Of Capital
Share price | $ 39.7 |
---|---|
Beta | 1.683 |
Diluted Shares Outstanding | 316 |
Cost of Debt | |
Tax Rate | 29.35 |
After-tax Cost of Debt | 2.70% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.685 |
Total Debt | 7,022 |
Total Equity | 12,545.20 |
Total Capital | 19,567.20 |
Debt Weighting | 35.89 |
Equity Weighting | 64.11 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 20,647 | 16,569 | 16,736 | 16,922 | 18,793 | 18,484.08 | 18,180.24 | 17,881.40 | 17,587.47 | 17,298.37 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 4,205 | 1,547 | 824 | 1,898 | 1,880 | 2,064.53 | 2,030.60 | 1,997.22 | 1,964.39 | 1,932.10 |
Capital Expenditure | -835 | -876 | -647 | -1,146 | -1,107 | -955.99 | -940.28 | -924.82 | -909.62 | -894.66 |
Free Cash Flow | 3,370 | 671 | 177 | 752 | 773 | 1,108.54 | 1,090.32 | 1,072.40 | 1,054.77 | 1,037.43 |
WACC | ||||||||||
PV LFCF | 1,022.08 | 926.86 | 840.52 | 762.22 | 691.21 | |||||
SUM PV LFCF | 4,242.89 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.46 |
Free cash flow (t + 1) | 1,058.18 |
Terminal Value | 16,380.53 |
Present Value of Terminal Value | 10,913.90 |
Intrinsic Value
Enterprise Value | 15,156.80 |
---|---|
Net Debt | 4,695 |
Equity Value | 10,461.80 |
Shares Outstanding | 316 |
Equity Value Per Share | 33.11 |